Correlation Between OURGAME INTHOLDL and PLAYTIKA HOLDING

Can any of the company-specific risk be diversified away by investing in both OURGAME INTHOLDL and PLAYTIKA HOLDING at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining OURGAME INTHOLDL and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OURGAME INTHOLDL 00005 and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on OURGAME INTHOLDL and PLAYTIKA HOLDING and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in OURGAME INTHOLDL with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of OURGAME INTHOLDL and PLAYTIKA HOLDING.

Diversification Opportunities for OURGAME INTHOLDL and PLAYTIKA HOLDING

0.0

Correlation Coefficient

OURGAME INTHOLDL  PLAYTIKA HOLDING

Pay attention - limited upside

The 3 months correlation between OURGAME and PLAYTIKA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OURGAME INTHOLDL 00005 and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING and OURGAME INTHOLDL is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on OURGAME INTHOLDL 00005 are associated (or correlated) with PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of OURGAME INTHOLDL i.e., OURGAME INTHOLDL and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between OURGAME INTHOLDL and PLAYTIKA HOLDING

Assuming the 90 days horizon OURGAME INTHOLDL 00005 is expected to generate 3.64 times more return on investment than PLAYTIKA HOLDING. However, OURGAME INTHOLDL is 3.64 times more volatile than PLAYTIKA HOLDING DL 01. It trades about 0.04 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.01 per unit of risk. If you would invest  1.45  in OURGAME INTHOLDL 00005 on October 3, 2024 and sell it today you would earn a total of  0.15  from holding OURGAME INTHOLDL 00005 or generate 10.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.63%
Values	Daily Returns

OURGAME INTHOLDL 00005  vs.  PLAYTIKA HOLDING DL 01

OURGAME INTHOLDL 00005

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OURGAME INTHOLDL 00005 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, OURGAME INTHOLDL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

PLAYTIKA HOLDING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PLAYTIKA HOLDING DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PLAYTIKA HOLDING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with OURGAME INTHOLDL and PLAYTIKA HOLDING

The main advantage of trading using opposite OURGAME INTHOLDL and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OURGAME INTHOLDL position performs unexpectedly, PLAYTIKA HOLDING can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PLAYTIKA HOLDING will offset losses from the drop in PLAYTIKA HOLDING's long position.

The idea behind OURGAME INTHOLDL 00005 and PLAYTIKA HOLDING DL 01 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.